Essay about Economic Growth Of The Bahamas

1455 Words Nov 27th, 2016 6 Pages
The Bahamas is an archipelago made up of over 700 islands and cays with a living population of over 319,000 residents. It has been the home to millions of tourists for both leisure and business. The Bahamas has opened its doors to many foreigners and investors that have helped with its foundation and production, yet, they’re still suffering. Although many aren’t cognizant to this fact – on the basis of GDP, The Bahamas is one of the wealthiest independent countries in the Caribbean and the wealthiest in the Western Hemisphere after the US and Canada. However, they haven’t developed a prudent solution to help pull them from a stifling of economic growth. In that regard, this country relies heavily on its Tourism, Construction, and Banking industry but its attempts to recovery have led this country to dig themselves a deep grave. Hence, in the fall of 2013, Value Added Tax (VAT) was introduced by the Bahamian government alongside other reforms to reduce the public debt which would result in positive economic and fiscal benefits. According to the ‘VAT: Summary and Explanation draft for Legislation- Ministry of Finance’, VAT is explained to be, “A tax on the sale of goods and services, paid as a percentage of their value at the point of sale… is collected at every stage of the import, … collected by only VAT-registered businesses” (VAT, 6). What many must bear in mind is that the Bahamian government revenue streams are merely limited to property and customs taxes and this…

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